Trading Rules

FXfreelance doesn’t use any Expert Advisers (EA) or automated trading, most of the positions we enter (and even exit) manually. Therefore the list below is not an attempt to fully “robotise” the way we look at the market, but help you in reading our everyday analysis, understand our charts and avoid basic questions.

Here is the chart briefing:

MACD and Stochs are the commonly used indicators for detecting overstretched market in the trending conditions, or detect tops and bottoms in the side-moving environment. The difference from typical approach is that we speed up our stochs to make it a more sensitive indicator, while MACD is significantly slowed down and represent much longer term view of the same chart.

Bollinger Bands – perfect tool to spot reversals in fast moving market, potential breakouts of narrow channels and the very first sign of sentiment change. The industry standard is 20 periods, 2 standard deviations parameters, but we find it giving too many false signals, so we use less sensitive, but much more valuable signal providing parameter of 3 standard deviations.

Moving averages we use in pairs – 5 EMA and 8 SMA, to detect the speed of developing tactical trend (mostly for scalping), 21 and 55 EMA – for longer period sense of market direction. All of the EMAs act like a dynamic support, more on that below. 200 EMA is found on our charts as a general “fair value” reference, which many traders look at.